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The Cooper Companies Announces First Quarter 2013 Results

Stocks in this article: COO

PLEASANTON, Calif., March 7, 2013 (GLOBE NEWSWIRE) -- The Cooper Companies, Inc. (NYSE:COO) today announced financial results for the fiscal first quarter ended January 31, 2013.

  • Revenue increased 16% year-over-year to $379.8 million. CooperVision (CVI) revenue up 12% to $301.4 million, and CooperSurgical (CSI) revenue up 37% to $78.4 million.
  • GAAP earnings per share (EPS) $1.50, up 38 cents or 34% from last year's first quarter. Includes final business interruption insurance proceeds of $14.1 million related to damage in one of our UK manufacturing facilities from October 2011.
  • Non-GAAP EPS $1.23, up 11 cents from last year's first quarter. See "Reconciliation of Non-GAAP EPS to GAAP EPS" below.

Commenting on the results, Robert S. Weiss, Cooper's president and chief executive officer said, "We began fiscal 2013 with a very solid first quarter. Revenues grew nicely with CVI continuing to show strong Biofinity ® growth and CSI posting strong growth in the fertility category. Our investment strategies are continuing to prove positive as indicated by our market share gains, and we remain optimistic about the future."

First Quarter GAAP Operating Highlights

  • Revenue $379.8 million, up 16% from last year's first quarter, 11% excluding currency and acquisitions.  
  • Gross margin 63% compared with 65% in last year's first quarter. The decrease was primarily the result of lower revenue due to currency, primarily the yen, and higher cost inventory associated with the relaunch of Avaira ®.  
  • Operating margin 18% compared with 19% in last year's first quarter. The decrease was the result of lower gross margin offset by positive SG&A leverage.  
  • Depreciation $24.1 million, up 19% from last year's first quarter. Amortization $7.4 million, up 33% from last year's first quarter, primarily related to intangible assets from the acquisition of Origio.  
  • Total debt increased $34.3 million in the quarter to $408.0 million, due to $44.4 million of share repurchases (460 thousand shares). Interest expense $2.6 million compared with $3.7 million in last year's first quarter.  
  • Cash provided by operations $47.6 million, capital expenditures $29.3 million, insurance recovery $0.6 million, and excluding acquisition costs of $0.3 million resulted in free cash flow $19.2 million. 

First Quarter CooperVision GAAP Operating Highlights

  • Revenue $301.4 million, up 12% from last year's first quarter, 14% in constant currency.  
  • Revenue by category:  
        Constant Currency
  (In millions) % of CVI Revenue %chg %chg
  1Q13 1Q13 y/y y/y
Toric  $ 91.6 30% 12% 13%
Multifocal  27.2 9% 31% 31%
Single-use sphere  65.5 22% 8% 13%
Non single-use sphere, other  117.1 39% 11% 12%
Total  $ 301.4 100% 12% 14%
  • Revenue by geography:
        Constant Currency
   (In millions)  % of CVI Revenue %chg %chg
   1Q13  1Q13 y/y y/y
Americas  $ 125.0 41% 18% 18%
EMEA  101.9 34% 7% 7%
Asia Pacific  74.5 25% 10% 17%
Total  $ 301.4 100% 12% 14%
         
  • Selected revenue by material:
        Constant Currency
   (In millions)  % of CVI Revenue %chg %chg
   1Q13  1Q13 y/y y/y
         
Silicone hydrogel  $ 119.6 40% 38% 38%
Proclear®  $ 75.5 25% 7% 8%
  • Gross margin 63% compared with 64% in last year's first quarter. The decrease was primarily the result of lower revenue due to currency, primarily the yen, and higher cost inventory associated with the relaunch of Avaira ®.

First Quarter CooperSurgical GAAP Operating Highlights

  • Revenue $78.4 million, up 37% from last year's first quarter, up 1% excluding acquisitions.   
  • Revenue by category:
  (In millions) % of CSI Revenue %chg
  1Q13 1Q13 y/y
Office, other  $ 29.5 38% -3%
Surgical procedures  24.9 32% 9%
Fertility  24.0 30% 535%
Total  $ 78.4 100% 37%
       
  • Gross margin 64% compared with 67% in last year's first quarter. The decrease was primarily the result of lower margins associated with our recently acquired Origio business.

2013 Guidance

The Company revises its full year fiscal 2013 guidance. Guidance is summarized as follows:

  FY13 Guidance FY13 Guidance
  Old New
Revenues (In millions)    
Total $1,565-$1,625 $1,575-$1,625
CVI $1,250-$1,290 $1,260-$1,290
CSI $315-$335 $315-$335
EPS    
GAAP $5.90-$6.10 $6.22-$6.37
Non-GAAP $5.90-$6.10 $5.95-$6.10
Free Cash Flow (In millions) $210-$230 $170-$200

Guidance assumes constant currency at the date of issuance.

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